Fintech Meetup Discussions: Using AI and Alternative Data for Responsible Decision Making
As technology advances, Equifax and other financial technology companies are reinventing credit decisioning products by responding to new lending models and utilizing AI-driven applications. These themes were the hot topics of discussion at Fintech Meetup, a recent event where 5,000 leaders from banking, payments and lending gathered to shape and create the future of fintech.
Mariette De Meillon, Chief AI Architect of U.S. Information Solutions at Equifax, participated in a panel discussion surrounding challenges and strategies for implementing AI in lending. She explained how Equifax is continuing to use its AI capabilities to evolve its models and implement new machine learning techniques.
“We’re constantly thinking about how to use AI to tell a story with data in a way that humans understand what actions need to be taken,” De Meillon said. “One big advancement I see in lending is unifying within a cloud environment which leads to easier deployment, monitoring and increased efficiency by running all on the same framework.”
Equifax is able to maximize its AI performance because of the Equifax Cloud™, a top-tier global technology and security infrastructure, backed by a more than $1.5 billion multi-year investment and one of the largest Cloud initiatives ever undertaken in the industry. The Equifax Cloud maintains and manages the large volume of diverse, proprietary datasets needed to maximize AI performance in risk modeling, identity protection and fraud prevention solutions. The Equifax Cloud enables the organization the ability to expand the depth and accuracy of its data and help its customers innovate faster to create more effective insights about the people and communities they serve.
Related to expanding the depth of data is alternative data - information not included in traditional credit reports such as verified income, telecommunication and utility payment history - that Equifax leverages to responsibly expand access to credit and support a more inclusive economy.
Shelly Nischbach, SVP & GM of Workforce Solutions at Equifax, shared how alternative data is incorporated into lending models to help potentially approve more consumers for loans. “A three-digit credit score was once such a cornerstone of making a lending decision,” said Nischbach. “At Equifax, our strategy is based on acquiring multiple sources of data in order to help fuel those decisions more appropriately and holistically.”
One way Equifax does this is through OneScore for Alternative Finance. This product uses the latest modeling technology, including gradient boosting machine learning and artificial intelligence to leverage exclusive data assets, including: DataX, Teletrack, telco and utility consortium data, and the option to include traditional credit data from Equifax.
Equifax understands the role and importance of AI to its customers’ businesses and ultimately works to support their growth, agility and speed at scale through its own use of the technology. Additionally, layering alternative data with Equifax-patented explainable AI (xAI) can help customers expedite consumer decisioning and potentially lift consumers into better credit bands. In today’s always-on world, innovation and speed are competitive advantages, and Equifax remains committed to using data-driven insights to build financially inclusive opportunities that move people forward.
Learn more about how Equifax has driven AI Innovation for a decade.